Edmonton Real Estate Investor

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

April 1st., 2015
Volume 18, Issue 6

Dear Friends and Partners,

I always find spring inspirational. Yeah, sure, maybe it is the seeds sprouting, warmer weather or the determined bits of green fighting through the slush. Whatever it is, it prompts me to redefine, renew and improve. I like to go through my systems and protocols to see what is working, what’s not and what can be improved upon. Constant learning is essential as is setting ‘fresh eyes’ upon your daily actions.

Whether you like Louis C.K.’s brand of humour or not, you can hear is honesty and frustration coming through in the jokes. But, forget him as a comedian for a second and read this article about what he did and the uncomfortable choices he made without certainty - that got him where he is today; that is a great story. It’s a spring story too.

"Louis CK turned down $500,000 a year from Conan in the early 90s so he could go broke instead. Conan wanted to hire him as head writer of his show. Every step of the way in the 20 years since he put a challenge in front of himself that seemed impossible and it was until he passed it. Now he’s the best comedian ever. One can argue with that but one can argue about anything. He was offered the job of head writer at one of the hottest comedy shows in the world. He would’ve grown from that and be set for life." Read more here

West Edmonton: Jasper Park Legal 4-Unit Cash-flow

Turbo charge your portfolio. This legal 4-unit, 1962 built, RA-7 zoned property is located directly across from school and park in Jasper Park. Near Telus World of Science, Edmonton Zoo, NAIT, Hospital and fast access to downtown and on either the Yellowhead or Whitemud. This property has front entrances to the 4 X1 BD and a parking pad for six cars.

This property was purpose built and is in good condition. It is rare to find a legal 4-pled for this price. Investment capital includes $15K budget slated for further renovations to modernize and improve value and rent-ability. All suites have own laundry. This is a turn-key deal. Excellent access to downtown, transit and parks.

This property comes complete with great tenants making this a totally turn-key property for you. Jasper Place is a mature area that is a desirable for tenants working in the city or attending NAITS west-side campus. HUGE upside potential due to the RA-7 zoning of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $449K
Total Investment: $108,500K
Your Estimated 5 Year Profit $60,697K.
Your pre-tax Total ROI is 56% or 11% per year

These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

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What to do when Alberta’s housing boom turns to bust

By Gary Marr, Financial Post, March 23rd, 2015

The economic downturn in Alberta is nothing new to Ryan Griffiths. The technician who works for the Ford Motor Co. in Airdrie, just north of Calgary, gets paid piecemeal based on every job he does. When the economy started to slow in 2008, he had to figure out how to make ends meet. “That’s the running joke around here: How did you get through it last time?” said Mr. Griffiths, 45.
The simple answer is: save enough money so you have a cushion when times are bad. Most planners suggest savings should cover your living costs for three to six months. The worst answer is: to do what some people appear to be considering right now, panicking. FOLLOW THIS ARTICLE

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Under clouds of economic gloom, Alberta entrepreneurs defend turf

By Anwar Ali, The Globe and Mail, March 19th, 2015

In the face of negativity swirling around the economy, Albertan entrepreneurs are steadfastly defending their turf, albeit with a little dose of reality.
Economic predictions are getting worse as GDP growth steadily declines. The provincial government’s current 2015 growth forecast, 0.6 per cent, is well below the previous estimate. The Conference Board of Canada has even warned that Alberta may stagger into a recession this year, its ability to recover contingent on the oil industry. READ MORE HERE

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Nearly half of Alberta consumers say economy remains strong

By Mario Toneguzzi, Calgary Herald, March 6th, 2015

The latest ATB Consumer Economic Pulse survey found that 47 per cent of Albertans in late February saw the province’s economy as strong despite the uncertain climate with lower oil prices.
That’s up by two percentage points from the previous survey in early February.

But their thoughts about the future economic outlook are not as positive. READ MORE HERE

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I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“Positive thinking will let you use the ability which you have, and that is awesome." - Zig Ziglar

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

"If most people keep their jobs, they’ll be able to pay their mortgages. If you have a job and you want to sell, you’ll likely still choose to not sell over accepting an offer that represents a big hit to your equity.
If that happens, we’ll find a lot of listings remaining unsold, with corresponding big drops in sales stats, but relatively stable prices."

I think prices are going to go down for the next 18 months -24 months. We may enter a down turn of 2 years, then up again in 2017 or 2018.

If you step back, it just seems to be that 5 to 7 year cycle. We may enter a down turn of 2 years, then up again in 2017 or 2018.

If you have a lot of equity and don't mind getting out then do so. I see a lot of listings where prices are strong. Of course asking price and selling price can be two totally different things.

Read the entire excellent level headed article here

Here are companies in Detroit truly making the best out of a bad situation. By reclaiming wood and glass from abandoned homes, they are keeping old forest wood out of landfills and producing beautiful products.

"Gary Zimnicki and Mark Wallace make guitars. Zimnicki also makes ukuleles and mandolins from old lumber that he says produces a richer sound. While most of his acoustic instruments use conventional wood, some buyers want an instrument made from a 100-year-old house, said Zimnicki, 57, whose home workshop is in Allen Park, a suburb.

“It’s a cool thing to be involved with preserving some of the past, part of our heritage,” said Zimnicki, showing a US$4,500 guitar made of wood from a house built in 1910. The top is made of Douglas fir from ceiling joists, rather than spruce. The back and sides are made from maple floorboards. "

Read Full Article HERE

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

March 14th., 2015
Volume 18, Issue 5

Dear Friends and Partners,

With the sudden burst of warm weather in Edmonton, it feels like spring is almost here. I took my youngest son to Home Depot last weekend to buy wood, seeds and soil for our new vegetable garden.

We also took some sprouting strawberry seeds and transferred them to little pots where we’ll grow them until we can ‘harden’ them and transplant outside after the threat of frost is gone.

This preparation to plant and the act of planting reminds me of quotes about planting a dollar, nurturing it to a business or an investment.

With that said are you ready for a little financial quiz? It’ll take you about 5 minutes and the results are insightful and fun to read: Pro Profs Money Quiz

Central Edmonton: Allendale 5-Unit Cash-flow

This 5-unit, 1940 built mixed-use commercial multi-family property is located in the heart of Allendale . Near U.O.A., Strathcona School, Hospital and fast access to downtown and the Whitemud this is a terrific location boating many parks in a desirable, mature neighbourhood.

This property has front entrances to the main suites as follows; 1X 3BD, 2X 1BD, 2X Bachelor. This property was built as a dwelling and commercial units (2).

It has recently had Safe Housing upgrades as well as interior upgrades. This will become a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and parks.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending Grant MacEwan. HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $635K
Total Investment: $139,925K.
Your Estimated 5 Year Profit $76,000K.
Your pre-tax Total ROI is 55% or 11% per year

These 5 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

=========================

Oil Prices: Freaking investors out for 150 years and counting

By Tyler Crowe , Motley Fool, February 17th, 2015

The entire oil and gas industry has pretty much maneuvered from crisis to crisis since its inception.

Whenever I read or watch financial media coverage of oil prices lately, the image that comes to mind is a bunch of kids who just ate half their weight in candy, washed it down with a gallon of Red Bull, and then run around the playground at warp speed. They both move so fast and sporadically that is almost impossible to keep up with them. Here is just a small example of headlines that have been found at major financial media outlets in just the past week:
Citi: Oil Could Plunge to $20, and This Might Be ‘the End of OPEC’
OPEC sees oil prices exploding to $200 a barrel
Oil at $55 per barrel is here to stay
Gas prices may double by year’s end: Analyst

FOLLOW THIS ARTICLE

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Eklund’s Millions: Real Estate/Reality star visits Edmonton

By Laura Severs, Edmonton Journal, March 6th, 2015

EDMONTON - "It was a million-dollar moment for Edmonton’s burgeoning million-dollar home market.
Fredrik Eklund, New York City’s top agent for 2014 according to industry publication The Real Deal, was on hand to share his secrets for success with Edmonton’s real estate movers and shakers.

A sold-out crowd of 300 turned out at the Fairmont Hotel Macdonald on Saturday, Feb. 28 to hear advice from the star of the hit reality real estate TV series Million Dollar Listing New York. They also showed up to find out how they could take Edmonton’s housing sector to the next level.

But the secret, said Eklund, is that there’s no silver bullet."

“The unglamorous answer is to work harder than anyone else,” “The only thing you have is yourself; the more I’m me, the more successful I am.” Fredrik Eklund

READ MORE HERE

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Edmonton Economy to see slight growth

By Dave Lazzarino, Edmonton Sun, March 3rd, 2015

Edmonton council heard Tuesday that the local economy may be more resilient than the province is making it sound.
The city's chief economist, John Rose, admitted that the provincial arithmetic that points to a $7 billion budget hole is sound, but it isn't the only number to consider.

"I wouldn't say (premier Prentice) is exaggerating their fiscal circumstances; they've got a major problem and they need to address it," said Rose. "Perhaps what might be pointed out in a little bit more positive way is that they've got a $6 billion contingency fund they're sitting on. What's happening with that?”

GRAB THIS STORY

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I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“My philosophy is that if I have any money I invest it in new ventures and not have it sitting around." - Richard Branson

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

Edmonton real estate market where is your downtown?

The oil prices have everyone jumpy but as yet the market here is not showing significant moves either way. In our key areas houses are still being listed at values indicative of a strong market.

Listed but not sold.

We'll need to wait and see if what they are asking is actually what they get.

“Our inventory is increasing, but we were very low and we expected it to do that in the spring,”
“Our sales are down a little, but we still do have sales. They’re not down as drastically as Calgary’s.” Realtor's Association of Edmonton President Geneva Tetreault Read More

Something from across the pond

It's a great reminder of the Albertan/Canadian cost of living when you see what you can get overseas for the same amount of money as a house in Canada. Of course it works both ways if you look at Vancouver.
Investors from around the world have come to Vancouver to purchase properties to ensure their kids can get a high quality education. This is happening now in Scotland.

"The average price of properties for Chinese buyers in the UK, skewed by London, is £770,000. But Mr Taylor says that spans "ultra-high-net-worth buyers who can spend tens and tens of millions, down to the buyer who starts looking at properties in the £100,000s" Read More

“Rates are so low now that investors should never be making an investment decision based on whether the BoC raises or lowers its rate,”"They need to pay attention to the reasons why it happens.

“Let the consumers obsess about the rate – strategic investors obsess about the why. It is always in the ‘why’ where strategic investment decisions are made.”

“Right now, the Bank of Canada is saying their economic metrics are showing stability and that they are happy with the impact of their last rate cut, happy with the lower Canadian dollar, happy with how that buffers the lower oil price while providing incentives to exporters,”
Don Campbell, a real estate investor, researcher, author and educator read full CREW article HERE

"Whenever I read or watch financial media coverage of oil prices lately, the image that comes to mind is a bunch of kids who just ate half their weight in candy, washed it down with a gallon of Red Bull, and then run around the playground at warp speed. They both move so fast and sporadically that is almost impossible to keep up with them.
Here is just a small example of headlines that have been found at major financial media outlets in just the past week:
    •    Citi: Oil Could Plunge to $20, and This Might Be ‘the End of OPEC’
    •    OPEC sees oil prices exploding to $200 a barrel
    •    Oil at $55 per barrel is here to stay
    •    Gas prices may double by year’s end: Analyst
Popular Among Time Subscribers

What is absolutely mind-boggling about these statements is that these sorts of predictions are accompanied with the dumbest thing that anyone can say about commodities: This time it’s different.
No it’s not, and we have 150 years worth of oil price panics to prove it." Read More

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

March 3, 2015
Volume 18, Issue 4

Dear Friends and Partners,

If you want to buy a revenue producing investment property, expand your portfolio, build the foundation for wealth - this is a great time to do it! Edmonton's experiencing a dip in its ever-cyclical real estate market that invites you, begs you, to hunt out the good deals.

If you are buying correctly (refer to our earlier blogs on how to choose an investment property) then you will see opportunity, as well as fear, in the market. What you need to do is have your parameters set tight for a property that meets your investment goal, and pull the trigger.

Are you waiting for rates to go lower? Don't.
Do listen to what Peter Kinch has to say about that. Watch here

Here is an excerpt from Fast Company about the importance of zagging while others zig:

Disruptive strategies begin with the courage to zag where others zig.

If your competitors are all starting to turn left, you look right. It is actually not that hard to do. It takes no brilliant foresight. It does not require seeing what others don’t. It simply requires reading the herd. When your competitors all start running in one direction, you just need to ask, "What if I ran in a different direction?” Read it here

Central Edmonton: Allendale 5-Unit Cashflow

This 5-unit, 1940 built mixed-use commercial multi family property is located in the heart of Allendale . Near U.O.A., Strathcona School, Hospital and fast access to downtown and the Whitemud this is a terrific location boating many parks in a desirable, mature neighbourhood.
This property has front entrances to the main suites as follows; 1X 3BD, 2X 1BD, 2X Bachelor. This property was built as a dwelling and commercial units (2). It has recently had Safe Housing upgrades as well as interior upgrades. This will become a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and parks.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending Grant MacEwan. HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $635K
Total Investment: $139,925K.
Your Estimated 5 Year Profit $76,000K.
Your pre-tax Total ROI is 55% or 11% per year

These 5 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

=========================

Lamphier: Alberta’s woes bring joy elsewhere
But TriWest says investors are moving in

By Gary Lamphier , Edmonton Journal, February 19th, 2015

EDMONTON - Sometimes, Canada resembles a giant high school. Petty jealousies, parochial squabbling and ugly sniping often trumps any shared national interest.
For years, Alberta has led the nation in economic growth and job creation, generating wealth for the entire country. But too often, Alberta’s success has only stoked envy and resentment elsewhere.

Now that oil prices are down and Alberta’s economy is sputtering, there is barely disguised glee in other parts of Canada.

“Pardon my schadenfreude,” one West Coast newspaper columnist recently sniffed. “No one likes to see the job loss that the plummet in oil prices has caused in Alberta ... But the corrective effect it’s having on our neighbour’s hubris? I admit to my mean spiritedness.”
FOLLOW THIS ARTICLE
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Workers, still finding jobs in Alberta, labour force numbers show

By David Howell, Edmonton Journal, February 6th, 2015

Workers are finding jobs in Alberta but the oil and gas industry is taking a hit, January employment numbers show.
Alberta added 13,700 jobs in January, most of them full-time, bringing gains over the past 12 months to 67,000 or 3.0 per cent.

That’s the fastest growth rate among all Canadian provinces, Statistics Canada reported Friday in its monthly labour force survey.

Alberta’s unemployment rate was 4.5 per cent in January, down by 0.2 percentage points from December. Nationally, unemployment decreased slightly to 6.6 per cent.

Edmonton’s unemployment rate was unchanged at 4.8 per cent but the city enjoyed a net gain of about 1,500 jobs, said John Rose, chief economist for the City of Edmonton. GET IT HERE

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Edmonton’s fast population growth to slow in 2015, city economist says.
Oil slump doesn’t mean people will stop moving here says, Rose

By David Howell and Andrea Sands , Edmonton Journal, February 11th, 2015

Edmonton has emerged from the latest Statistics Canada population snapshot as the second-fastest-growing city in Canada, behind only Calgary.
But the downturn in the economy means the rapid growth won’t continue into 2015, the city’s chief economist warns.

Between July 1, 2013, and June 30, 2014, the population of the Edmonton census metropolitan area grew 3.3 per cent to 1,328,290, Statistics Canada said Wednesday.

The Edmonton census metropolitan area includes Edmonton, St. Albert, Sherwood Park, Fort Saskatchewan, Leduc, Beaumont, Spruce Grove, Stony Plain, Morinville, Devon, Gibbons, Redwater, Calmar, Thorsby and several other communities. READ MORE HERE

===============

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“Set your goals high and don’t stop until you get there." - Bo Jackson

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

Alberta is a place of booms and busts. Wealth can be made and lost very quickly. For all the "overnight" success stories you hear there are dozens more tales of funds lost, misappropriated and outright stolen.

From straw buying to title fraud there are many ways you can be taken. Take a look at Globe and Mail's Top 6 Real Estate Scams.

We've all heard of the Madoff ponzi scheme that took in billions of dollars. Did you know we have a possible Canadian one in courts now? Read about League Group and the $330 million of investors funds that they lost.

Lastly, Field of Dreams, the Albertan farmland project that lost billions.

We recently moved to accomodate our desire for city living with a bit of a country life feel. We got a beautiful ravine front bungalow. My kids say it's country in the front, city in the back.
One of our neighbours owns three houses on the street. They are rented and used for storage as well. These are pretty expensive prime lots. I imagine he bought these three houses kept them tenanted and paid down the mortgages over the last 25 years until he got mortgage free.
He now has a steady cash flow ( aside from taxes, insurance and repairs) and easily one million plus just for the lots....
If that isn't an excellent long term strategy I don't know what is!
You don't need 20+ houses you would do well with only one.
“We have always believed that real estate is a safe long-term play. The numbers don’t lie – since prices have begun to be tracked, they have increased,” “Of course we have seen short-term fluctuation with dips and corrections, but in the long term the arrow has always pointed up.” Don Campbell

Real estate is not day-trading - read more HERE

In my neighbourhood all the old tiny war houses are being turn down and turned into gigantic single family homes, duplexes and triplexes. I ofter marvel at the heating costs of such mega houses.

If you are on Facebook and aren't good at avoiding clickbait you have seen the exact opposite end of the spectrum. Tiny houses. 900 sqft and down. Often built by the owner and using whatever he could find in a 100 meter radius (I jest). However tiny houses are amazing. They look cozy and often epitomize a Japanese aesthetic of style and functionality.

What takes me out of the tiny house market is a husband, two boys, a cat and a billiards table.

Today you can see a 165 sqft one on beautiful Pender Island HERE

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

February 14th., 2015
Volume 18, Issue 3

Dear Friends and Partners,

Not all the news stories are bad. I met my friend early Monday morning and he looked really tired. He said that he’d been volunteering (1 of 3 shifts) for The World's Longest Hockey Game. He’d spent from 2:AM-6:AM score-keeping.

That meant standing on the cold balcony watching the game at the house of Dr. Brent Saik's of Saiker's Acres hockey rink who has been hosting the event. He said it's amazing to take part.

You can see more here and donate here. Keep the good news coming.

Central Edmonton: Inglewood 4-Unit Cashflow

Turbo charge your portfolio. This 1977 built Side X Side Duplex with fully finished basement suites is located a few blocks from the old municipal airport, which is to be redeveloped into an urban living/green space. Inglewood offers easy access to Downtown, Grant MacEwan and Yellowhead Highway as well as many parks and schools to enjoy in this desirable, mature neighbourhood.

This property has front entrances to each side of the 2 X 3BD halves. This property was built as a duplex and features 2 x 1BD (non-conforming) basement suites. Slated to renovate and modernize to improve value and rent-ability. This will become a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and parks.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending Grant MacEwan. HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $679,000
Total Investment: $158,900
Your Estimated 5 Year Profit $96,725
Your Estimated pre-tax Total ROI is 60% or 12% per year

These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

=========================

Short-term slowdown predicted

By Myke Thomas , Calgary Sun, January 17th, 2015

The sudden and precipitous drop in the price of oil has put a huge question mark over the Calgary housing market in 2015 and Calgarians are looking for answers.
The economists have answered with their thoughts below.

Canada Mortgage and Housing Corporation

CMHC predicted a housing market slowdown in the fall, before oil prices plunged, with expectations for total housing starts to decline 16% and net migration to slow by 17%, with an increase of 2% in MLS sales this year over last. FOLLOW THIS ARTICLE
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Analysis: Job figures show oil price drop hasn’t sunk employment
Employers watch numbers for impact of declining spending on oil exploration

By Don Pitis, CBC News, February 6th, 2015

Oil companies across Canada have been slashing their budgets. In previous months, those cuts have not showed up in Canadian unemployment numbers, but today's job numbers offer a new window on the state of the U.S. and Canadian economies.
The numbers were a surprise to the upside, with Canada's economy adding 35,000 jobs during the month — much better than the 5,000 jobs that economists had been expecting.

Jobless figures give unemployed people an update on their prospects for finding work, but labour force statistics do a lot more than that. GRAB THIS STORY

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Keep building during downturn Consulting Engineers of Alberta urge

By David Howell , Edmonton Journal, February 5th, 2015

Alberta’s economic woes have prompted the Consulting Engineers of Alberta to ask members to hold their 2015 rates for consulting services at 2014 levels, as part of a wider effort to encourage continued spending on infrastructure.

In December, the association recommended a 3.3-per-cent increase to 2015 contracts. But after a vigorous debate this week, board members voted unanimously to ask all firms to hold the line, CEA president Matt Brassard said Thursday. READ MORE HERE

===============

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“If you’re going through hell, keep going!" - Winston Churchill

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

http://www.glennsimoninc.com/aboutus.php

I got stuck in an 80s music warp on youtube the other day. One hit led to another till I was watching a Platinum Blonde video.

Where are they now??? Pressing question, I googled them.

Kenny Maclean the bassist and Keyboardist passed away in 2008.

Mark Holmes the lead singer is an actor and composer.

Sergio Galli is a luxury home builder in Ontario. I'm sure I've seen his beautiful homes in Mississauga. Take a look here

Chris Steffler lives in Toronto. I found a great article about his foray into rental real estate. Imagine the guy from Platinum Blonde as your landlord.

Anyway he had some troubles:

“One day I got a call from a tenant saying he was going to sue me for $100 because a mouse ate out the crotch of his girlfriend’s bathing suit and another $500 because mice were in his sofa. How did it become such a huge problem? This couple had been there for two years. All they had to do was tell me they’d seen a mouse and I would have come right over to deal with it.”
“I was totally stressed out. When a tenant doesn’t pay the rent or a cheque bounces, you can have the best excuses in the world but the mortgage company doesn’t care about your problems. Some major repair would suddenly need to be done and I’d be like, ‘omigod, I need two grand by Thursday!’ Those houses cost me a lot of money and a relationship.”

The best piece of wisdom:

It’s about being self-sufficient,” he says. “If your landlord doesn’t have to come all the way to your place at dinnertime on a long weekend just to fix a leaky tap, you cement a great relationship. Just let him cash your cheques and worry about the big stuff, like replacing a furnace or the roof. The more love you can get happening with your landlord, the better off you’ll be.”

Rentals are never easy. It's interesting everyone has the same troubles. No one is doing it better and becoming a millionaire over night. Maybe a property manager could have eased his troubles.

“While this is not unusual for the winter, it can make it difficult for buyers to find the right home. The influx of properties we have seen on the market in January will be a relief for buyers, allowing them more choice in their price range and possibly more time to make their selection."

We are likely seeing the effects of oil prices and a feeling of economic cautiousness among some buyers,” Geneva Tetreault, president of the Realtors Association of Edmonton Read More

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

January 31st., 2015
Volume 18, Issue 2

Dear Friends and Partners,

Wringing your hands over low oil prices? Fair enough. The tone of the media is certainly off to a gloomy start for 2015. It’s looking like we will have a good buyer’s window for Q2/Q3 as oil prices stay down. This is great news for long-term investors as well as those looking to strategically build up their portfolio; not such good news for sellers. You can hear Don Campbell’s take on oil prices here.

In a recent economic update Don Campbell joked about the tongue-in-cheek abbreviation emerging on social media:

F.W.F.A.Y.S. = Follow Wrong Feed And You're Screwed.

That speaks to the concern of getting bombarded with negative news and following the spiral of depressing messages downward. It’s crucial to remain informed and have a balanced opinion of what is going on.

Personally, I read and listen to people that deliver the facts in as much of an unbiased way as possible. I also tune into stations that ‘report’ more than they ‘spin’ media messages. Still, some days it's tough and you need to unplug and/or get a dose of something positive (Danielle likes Hayhouse) to counter balance.

Central Edmonton: Inglewood 4-Unit Cashflow

Turbo charge your portfolio. This 1977 built Side X Side Duplex with fully finished basement suites is located a few blocks from the old municipal airport, which is to be redeveloped into an urban living/green space. Inglewood offers easy access to Downtown, Grant MacEwan and Yellowhead Highway as well as many parks and schools to enjoy in this desirable, mature neighbourhood.

This property has front entrances to each side of the 2 X 3BD halves. This property was built as a duplex and features 2 x 1BD (non-conforming) basement suites. Slated to renovate and modernize to improve value and rent-ability. This will become a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and parks.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending Grant MacEwan. HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $679,000
Total Investment: $158,900
Your Estimated 5 Year Profit $96,725
Your Estimated pre-tax Total ROI is 60% or 12% per year

These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

=========================

Simons: In spite of lower oil prices, Edmonton economy still chugging along

By Paula Simons, Edmonton Journal, January 10th., 2015

“The cyclical collapse of oil prices is as predictable as death. We all know we are going to die. The only surprise is when.”

— Former Alberta finance minister Ted Morton in the Globe and Mail.

EDMONTON - Through Edmonton, a cold wind is blowing.
Not the kind Environment Canada predicts. This is the kind of wind chill forecast that gives people the financial shivers.

Oil prices have plummeted to $48 a barrel. The provincial government has changed its budget projections from a $1.5-billion surplus to a $500-million deficit. Oil producers are starting to talk about layoffs.

It’s the most serious fiscal circumstance we’ve seen in a generation in this province,” Jim Prentice said Thursday. FOLLOW THIS ARTICLE

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Alberta cannot just sit and wait for the next oil boom

By Andrew Leach, Globe and Mail, January 23rd, 2015

That Alberta is dependent on its resource sector is hardly news – the province has long relied on both the economic activity and the direct revenue from royalties and land sales to underpin government budgets.

However, to listen to many opining on Alberta’s finances and offering solutions to our fiscal “crisis,” you’d think that Alberta was more dependent on resources than it has ever been – and that’s not at all the case.

Alberta’s government revenue story is best summed up by three words: growing; cyclical and diversification. For that story to continue, however, Alberta is going to have to do a lot more than pray for another oil boom to come along. GRAB THIS STORY

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Will oil’s big drop pop Canada’s housing bubble?

By Megan McArdle, Bloomberg News, January 27th, 2015

If you watch any amount of HGTV — which is to say, if you are a middle-aged married person — then you’ve probably noticed something funny: A lot of the people on shows such as “Property Brothers” seem to have Canadian accents. And you’ve probably noticed something else a bit funny:

Those people are paying a heck of a lot for claustrophobic row houses on so-so streets. READ MORE HERE
===============

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth. Your success continues EVERYDAY, let me help you build for tomorrow.

“The way to get started is to quit talking and start doing." - Walt Disney

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

Edmonton mature neighbourhoods are revitalizing at a great pace. You can see a lot of the old bungalows and military housing replaced by big beautiful houses all around the city.

"From straw-bale insulated homes to extremely narrow, yet spacious 1,200 square foot homes, the tour looked at several examples of infill homes in mature Edmonton neighbourhoods including Bonnie Doon, Westmount, Riverdale, and Queen Alexandra." Read More

IDEA (Infill Development in Edmonton) held a tour on Saturday to showcase some of the most impressive infills. You can view the slideshow and even sign up for the follow up (Jan 27) workshop here

In Alberta we are used to oil's ups and downs, however, it still causes a lot of emotional turmoil. There are upsides to the lower costs of oil including easing the strain on short staffed industries, time to build infrastructure and giving workers a chance to re-educate.

CBC highlights the silver lining to lower oil

and the Mayor of Fort McMurray has some insight:

"When you go through a slowdown as a municipality, we’re grateful for them….We actually get to catch up on these things that we fell behind on." Fort McMurray Mayor Melissa Blake

"She says for those who make Fort McMurray their home the latest bust cycle will help rein in the high cost of housing and allow small businesses more opportunity to build, grow and find much needed staff."Read more here

Female Realtors in Toronto please be careful meeting that "perfect" client. It might be much more dangerous than just a waste of time.

"Warning! Fake client trying to lure agents to properties.
Industry leaders are cautioning agents working Toronto’s west end, warning them about a seemingly ideal client intent on luring them to vacant properties.

In Etobicoke, this individual is posing as a buyer and is targeting female agents, aiming to find them alone at a vacant property. The Toronto Real Estate Board released a member alert via its intranet, detailing the attempts made on at least five women in a single office.

The individual claims to be a doctor relocating from British Columbia, and is looking for an $800,000 home for his wife – a fellow doctor – and their two children.

The deception is a reminder of the tragic kidnapping and murder of a real estate agent in Arkansas. The man arrested for the crime said he targeted the agent “because she was just a woman that worked alone, a rich broker.”

News of the scam came to light when one female agent told her colleague that she received the same request from a similar buyer. That interaction, she said, turned sour and the buyer began harassing her with phone calls and rude text messages.

The agents looked further into the individual’s story, and found that no hospitals – whether downtown or in Etobicoke – were planning to hire a doctor by the name the individual provided. Read More"

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

January 14th., 2015
Volume 18, Issue 1

Dear Friends and Partners,

2014 feels like a blur to me. The exception was where unforgettable memories were made; truly engaging conversations, planned adventures and the spontaneous ones that happened in between.

So, I have my business goals, my health goals, my financial goals and now I’m working on my ‘crazy fun and memorable goals’. It's just too hard to plan spontaneous. What about you? Do you have a list of FUN things to do in addition to the serious goals, have you found a way to make the serious goals fun? Share them in an email, post to our blog or a link to yours.

Did you notice the falling oil prices? Yeah, I meant that sarcastically.

It’s a peculiar shift to go back and read the news from a few months/years ago when oil prices were up. The general worry was how BAD the oil sands are and how we collectively ‘must' slow, correct, stop, monitor, penalize, cancel (to various degrees) oil production. As soon as oil starts to tank, the same reporters sing a song of woe about how the goose is dying, heck you’re in the kitchen sharpening the knives or at least across the road badmouthing how bad that goose is…

Nonetheless, we’ve seen a sharp downfall in crude prices. My take is that barring a series of major geopolitical events, such as what happened last week in Paris, economic downturn in U.S.A and/or China. We will see a rebound sometime later this year. Not to where it was, but hopefully over $60/b. The biggest factor is emotional, what will WE, the global community, feel like in 2015? Scared, Rebellious, United? This will play a big role in where oil goes.

Softer housing prices for 2015 in areas that rely on oil and gas production is very likely. That can mean a good buying opportunity for long-term investors. Flatter prices will inevitably frustrate those that wish to sell. Looking at the current situation and economic fundamentals in Edmonton, AB, the housing market should remain stable - but no one can ever forecast 100% accuracy. Alberta, specifically Edmonton, remains the best spot in Canada to invest; however it goes without saying that risk is consistent everywhere.

Building a portfolio than can weather up and down cycles is key when buying.

Do some reading:
RBC’s well laid-out Housing Report PDF
CMHC’s report

South East Central Edmonton: King Edward Park 2-Unit Cash flow

Turbo charge your portfolio. This 1969 built Side X Side Bungalow with fully finished basements is located a few blocks off Whyte Ave. in King Edward Park. Easy access to Downtown, UOA and Wayne Gretzky as well as many parks and schools to enjoy in this neighbourhood. This property has front entrances to each side of the 2 X 5BD halves. This property was built as a legal duplex and has substantial renovations done throughout, finishing the basement with bedrooms and kitchenettes. No repairs are needed; this is a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and Mill Creek Ravine.

Comes complete with great tenants making this a totally turn-key property for you. King Edward Park is a great mature area that is a desirable for tenants working in the city or attending U.O.A.. HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $685K
Total Investment: $158,330K.
Your Estimated 5 Year Profit $88,418.56K.
Your pre-tax Total ROI is 55 % or 11% per year

These 2 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants.

Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

=========================
Energy economist Peter Terzakian takes a bullish view on Alberta oil

By Gary Mason, Globe and Mail, December 25th., 2014

In your travels around the world, what do you hear most often about Canada?
“It’s cold in Canada, isn’t it?” is the universal conversation opener. Responding to the stereotype becomes annoying after countless meetings abroad, but I don’t mind when put in a global context. At least I don’t have to answer to questions about civil war, corruption, political instability or other domestic nastiness that is so prevalent in other countries. People see us as a very safe place with a lot of integrity. Yet from a business point of view, those who sit on the other side of the table view Canada as an unknown expanse. They always want to know about Canada in the context of the United States – a free-market point of reference they understand. FOLLOW THIS ARTICLE

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Ewart: Oil price rout dominates energy sector

By Stephan Ewart, Calgary Herald, December 27th, 2014

"The chill of winter hasn’t saved Canada’s booming oil and gas industry from “a good sweating” as the year comes to an end.

The top story in the Canadian oil and gas industry in 2014 wasn’t even on the radar in mid-June when West Texas Intermediate crude was trading for more than $107 US a barrel. Then, with little warning, the price of oil plunged nearly 50 per cent in six months.

The far-reaching implications of the oil price decline — from spending in the oilpatch and the falling price of gasoline to the value of the dollar and the performance of the stock market — shows up repeatedly in my choices for Top 10 stories in the energy sector in Canada from the past year." READ MORE HERE

===============
Calm before the storm in Alberta?

By Mario Toneguzzi, Calgary Herald, January 9th, 2015

Is this the calm before the storm for Alberta’s labour market?
One national economist was speculating that on Friday as Statistics Canada reported that both the Calgary region and Alberta saw employment growth in December while the rest of the country shed jobs.

In fact, Alberta’s 2.9 per cent hike in employment from a year ago was the best in the country.

Robert Kavcic, senior economist with BMO Capital Markets, said the employment situation is “likely to change in the coming months as the steep slide in oil triggers a wave of cost cutting across the energy sector.”

He said it will take some time for unemployment rates in Calgary and Edmonton to rise in response to the oil price shock. READ MORE HERE

===============

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“Adversity causes some men to break; others to break records." - William Arthur Ward

Warm Regards,
Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

After a wonderful few weeks off. We come back to oil prices still falling. I went to the pump and had a moment of glee when I saw the price at $.72 per litre, then I realized the impact on me and Albertans as a whole.

This isn't the first time in Alberta has ridden a roller coaster and it won't be the last. In fact it may not be that bumpy at all.

Low gas prices are still nothing to take lightly. Here are some big risks to the Canadian economy JUMP

A Futurist forecasts the unexpected. One of them isn't a Hoverboard.... HERE

I’m not a fan of Maclean’s overall, but there are of course some good opinions and ideas inside the magazine. There are far too many charts here to get an idea of anything, but it is still worth looking through and examining key charts that paint a picture of Canada and your province. JUMP HERE

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

December 4th., 2014
Volume 17, Issue 9

Dear Friends and Partners,

Over the last few months we’ve heard a lot of feedback from readers like you, about our NuWire series. What we’re hearing is: “Keep it coming!”

Investors have an insatiable thirst for knowledge. In that spirit, we’re re-posting a few of our earlier NuWire articles to help you define your target area, property and tenant profile.

Before we jump into this month’s issue though, we want to wish you and your family a wonderful Holiday Season!

We’ll be taking a winter break and this will be the last issue for 2014. New issues (#10 Volume 17) will resume January 15th, 2015. Take a break, recharge, and get ready for a rocking year ahead!

Real Estate Investing: Focus on the Fundamentals
There are three main criteria that must be addressed before moving ahead with any real estate investment. The key to a successful property purchase comes first from an evaluation and understanding of the area in which you'll potentially be pouring your capital. Today we'll focus on the fundamentals.

What makes a good property investment? First, look at what is driving the market. I'll give you the formula that I use to make profitable purchases. You can use these rules of thumb in any market to help you separate fact from fiction and leave emotion out of the investment.

The Top 5 factors you need to study:

Economy: Does your target area have a diverse economy or a single industry economy? The more diverse the economy, the better the buffer to weather out economic storms, especially when there are several industries that ebb and flow at different times, which creates more stability. Is there outside investment? If so, on what scale—millions or billions of dollars?

Population: Is your target region experiencing an increase of new workers, students or families? A growing population increases the demand for rental housing and home purchases. The younger the population demographic, the better; retirees may represent a niche market to sell property to, but they are unlikely to produce a long term rental and resale base. You need to determine whether there is an overall housing demand in the area. Is it growing faster than average?

Real estate cycle: Is your area beginning to grow and flourish, or is it nearing the end of its peak? Don Campbell, an author and real estate investor, breaks down the real estate cycle into four seasons—spring, summer, fall and winter—in his book Real Estate Investing in Canada. Like any good farmer, you should plant your seeds—buy your properties—in the spring, tend to them—repair, rent and manage them—in the summer and harvest—sell them—in the fall. In the winter, take a rest as you start preparing for the next planting season by doing research into the next target area and getting ready for the next buying opportunity.

Political leadership: Is there a positive, growth oriented atmosphere in your region, one that will foster long term growth?

Transportation improvements: On a macro scale, look for areas that will benefit from a change in infrastructure or a transitional change in demographics as well as the beginning of renewal.

Keeping your investments straightforward, unemotional and grounded in reality pays. Choose a place where you can grow your money slow and steadily. When it's time to take profits, have your exit strategy in place to ensure success.

Central Edmonton: Terrace Heights 4-Unit Cashflow (PPI Deal)

This 1963 built Side X Side Bungalow with in-law suites is located of Wayne Gretzky Drive in Terrace Heights. Easy access to Downtown, UOA and the Yellowhead as well as many parks and schools to enjoy in this neighbourhood.

This property has front entrances to the 2 X 2BD main floor units and lower entrances for the 2X 1BD suites. This property was built as a duplex and will need renovations to operate the (non-conforming) in-law suites.

This is a purchase plus improvement deal, meaning that we wrap the ($25K) renovations into a new mortgage. En-suite laundry to be added. Property has parking pad. Excellent access to downtown, transit and Sherwood Park.

Comes complete with great tenants making this a totally turn-key property for you. Terrace Heights is a great mature area that is a desirable for tenants working in the city or attending U.O.A..

HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core. Purchase price factors in renovations. P.P. of $575K + $25K renovations = $595K.

Purchase price: $595,000K
Total Investment: $139,000K.
Your Estimated 5 Year Profit $94,475K.
Your pre-tax Total ROI is 68% or 13.6% per year

These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

=========================

Two 51 story towers planned for Edmonton’s downtown
By Caley Ramsey, Global News, November 15th., 2014
Turbo charge your portfolio.

Watch above: It’s described as one of the city’s biggest residential infill projects. One with the potential to change downtown Edmonton. As Eric Szeto reports, the latest condo development proposal is a reflection of Edmonton’s hot market.
EDMONTON – Yet another mixed-use development is in the works for Edmonton’s ever-booming downtown.

An Ontario development company is currently preparing a rezoning application to build two 51-storey towers near MacEwan University. FOLLOW THIS ARTICLE

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Jim Prentice says Alberta forgot some simple truths on energy industry

By CBC News, November 23rd, 2014

Jim Prentice says Alberta 'forgot some simple truths' on energy industry
Premier says goal is to work towards building pipelines in every direction possible

Alberta Premier Jim Prentice says the province has forgotten some key points about the sustainability of the energy industry and is vowing to work towards building as many pipelines as possible.
In a speech to the Economic Club's Canadian Energy Summit in Calgary on Friday, Prentice said the province needs to remember that hydrocarbons are only valuable when there are competing customers — and if there are multiple ways to ship the resource.

"For a period of time we lived comfortably in a world of insatiable American demand for Canada's energy products," said Prentice.

"Along the way we forgot some simple truths. We forgot that hydrocarbons are only valuable if there is someone willing to pay for them and moreover, someone who has the ability to receive them." READ MORE HERE

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We’ll be taking a winter break and this will be the last issue for 2014. New issues (#10, Volume 17) will resume January 15th 2015. Take a break, recharge, and get ready for a rocking year ahead!

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“Life is really simple, but we insist on making it complicated." - Confucius

Warm Regards,

Todd and Danielle Millar

I love Steve Chandler's work.

This is from his Wealth Warrior Movement

"I first saw the fun and benefit of this when my friend and company CEO Duane Black solved the equation on two flip charts in front of a grateful gathering of leaders.

Here it is: When you are positive (picturing the math sign: +), you add something to any conversation or meeting you are in. That's what being positive does, it adds.

When you are negative (-) you subtract (-) something from the conversation, the meeting or the relationship you are in. If you are negative enough times, you subtract so much from the relationship that there is no more relationship. It's simple math. It's the law of the universe up there on the flip chart of life: positive adds, negative subtracts.

As in math, when you add a negative it diminishes the total. Add a negative person to the team, and the morale and spirit (and, therefore, productivity and profit) of the team is diminished. Add a positive person, and you've just added life to your team, your organization, your life."

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com

November 15th., 2014
Volume 17, Issue 8

Dear Friends and Partners,

Last month’s newsletter was immensely popular. Investors want to learn and understand how to use Real Estate cycles to their benefit. In that spirit, we’re re-posting a few of our earlier NuWire articles to help you define your target area, property and tenant profile. Coupled with real estate cycle knowledge, you can build a strong portfolio.

Reach Your Real Estate Goals with Filters that Clarify Your Targets
There are different strategies that you can apply to make money in good or bad markets, with short-term buys or longer ones. We follow a conservative style of investing or a ‘residential buy and hold strategy’ — nothing fancy here.

Real estate cycles and to a lesser degree, market timing, play roles in where and what type of property you’ll purchase. Once you have used those first filters, you can start using the other filters to analyze a potential area or property. The #1 constant filter is cash flow from day one.

Filters To Consider

1. Type of investment property and exit strategy: How long do you expect to be in the market, what exit strategies can you employ?

2. Financing options for this type of investment property: Is conventional financing possible - 50%, 35%, 20%, 5% down payment? Are their incentives such as grants or ‘purchase plus improvement’ strategies that you can leverage?

3. Your ROI target: After all expenses what is your minimum target return within your elected time frame? Is this realistic and achievable in the current market?

4. Management options: Who will look after your property? If it is you, what succession plan do you have in place to remove you from management when the time comes?

5. Is your system scalable: Can you create a template and duplicate success?

Exit:

Every time I consider adding a property to my portfolio I establish the type of deal and how/who I will eventually sell it on to. Some properties may be a short-term renovation/resale of 6 months. Others may be keepers that I don’t intend to sell for 20+ years. Is my exit buyer a fellow investor, a first time home buyer or a retiring couple?

Financing:

I very rarely want to use the smallest down payment possible. More often I look to buy properties that stress-test (a system we use to run interest rate hikes and rent drops to test the property’s breaking point; a shock test to determine the buffer we need to build in) with a LTV of 75%. Instead of going too skinny into a property I will look for ways to add value (equity) by financing renovations or buying with an advantage like dividing a lot, adding a suite, garage or other source of income. Of course, buying under value is also good. That doesn’t mean that I use all my time chasing distressed properties or desperate sellers.

ROI:

I run my properties through various filters and stress-tests (as above). Income after all expenses equals Net Positive Cash Flow (NPCF). I factor in the expenses below, but remember you may have additional expenses that you need to add too. There are property specific costs such as mortgage, tax, insurance, condo fees, property management, vacancy, repairs, advertising, bookkeeping, yard care and tenant incentives. When I do up a pro-forma I look at my selling costs as well as what my return on equity and appreciation are. My main focus here is to establish my NPCF and determine if the overall ROI is inline with similar property metrics in my target area.

Property Management:

If you are self managing there will come a time when you want to hand the reins over to an experienced manager so factor these costs in. While you are self-managing you need to identify your cost be it time or money, because it will likely be both.

Scalable Systems:

First you need to establish your goal as a property investor. This may mean a dollar amount of NPCF, a lifestyle shift or creating generational wealth for your family. Refine your goal and the number of properties you need to reach it. Then look at capital, financing, time and energy needed to reach your goal – is it duplicable? Do you need to buy 3 single-family homes or 3 x100 units? Quite often you will find that you need less doors to reach your goal than you initially thought.

Remember that every plan grows and mutates. Along the way you’ll identify what works best for your skill set and in your area. You may tweak your plan to better compensate your lifestyle; grow with it.

=====================================================

Central Edmonton: Terrace Heights 4-Unit Cashflow (PPI Deal)

Turbo charge your portfolio.
This 1963 built Side X Side Bungalow with in-law suites is located of Wayne Gretzky Drive in Terrace Heights. Easy access to Downtown, UOA and the Yellowhead as well as many parks and schools to enjoy in this neighbourhood.

This property has front entrances to the 2 X 2BD main floor units and lower entrances for the 2X 1BD suites. This property was built as a duplex and will need renovations to operate the (non-conforming) in-law suites.

This is a purchase plus improvement deal, meaning that we wrap the ($25K) renovations into a new mortgage. Ensuite laundry to be added. Property has parking pad. Excellent access to downtown, transit and Sherwood Park.

Comes complete with great tenants making this a totally turn-key property for you. Terrace Heights is a great mature area that is a desirable for tenants working in the city or attending U.O.A..

HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core. Purchase price factors in renovations. P.P. of $575K + $25K renovations = $595K.

Purchase price: $595,000K
Total Investment: $139,000K.
Your Estimated 5 Year Profit $94,475K.
Your pre-tax Total ROI is 68% or 13.6% per year

These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

=========================

Bumpy economic ride causes panic

By Gary Lamphier, Edmonton Journal, October 15th., 2014
EDMONTON - Yes, oil prices have tanked, and stock markets have sunk too. The last month has been a real bummer, man.

Unless you live under a rock, you know this. No need to alarm our fellow townsfolk by using words like “collapse” to hype the news.

No doubt, it has been a miserable few weeks. Corrections happen, and this one is well on its merry way, leaving pain and angst in its path.

As of Wednesday’s close, oil prices were 23 per cent below their June high. Toronto’s main equity index was off 11.5 per cent, and the key U.S. indexes had shed between 6.9 per cent and 8.5 per cent.

Why? Pick your poison, peeps. The reasons are many, and varied. For starters, stocks were overvalued, and overdue for a pullback. Ditto for oil prices, which remained aloft despite growing global supply and softer demand in China and Europe. FOLLOW THIS ARTICLE

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Alberta economy to ‘soften’ in 2015, but experts say no crisis on the horizon

By Amanda Stephenson, Calgary Herald, November 13th, 2014
Calgary and Alberta may be in for a period of softer economic growth in 2015, but two top economists said Thursday there is no reason to be alarmed.

While sharply lower oil prices are expected to have an impact, the guest speakers at Calgary Economic Development’s 2015 Economic Outlook said by no means will they be a catastrophe for Alberta or Canada as a whole.

“Sometimes you want a little bit of a moderation — it helps to control costs for energy producers, it helps to rebalance the labour market,” said Todd Hirsch, chief economist for ATB Financial. “I’m not expecting anything in 2015 that anyone could call a bust — just a slight pullback, a bit of a moderation.” GRAB THIS STORY

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Yedlin: Keep your eyes on Q4 results in Alberta’s energy sector

By Deborah Yedlin, The Calgary Herald, November 1st, 2014

For anyone who doesn't yet understand the importance of the energy sector to Canada's economy, Friday's Gross Domestic Product numbers were opportunity to reassess that view.
The country's economy grew at a rate of 0.1 per cent in August, with the fall-o in oil and gas activity being one of the key culprits. That GDP number supports an annual growth rate of two per cent.

While some of that decline is attributable to both planned and unplanned maintenance activity from August, the fact there was also a 4.3 per cent drop in oil and gas service sector activity suggests something bigger is going on. And that's before the oil price really tanked. READ MORE HERE

===============

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.

Your success continues EVERYDAY, let me help you build for tomorrow.

“Learn to say ‘no' to the good so you can say ‘yes’ to the best." - John C. Maxwell

Warm Regards,

Todd and Danielle Millar

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“Do your own thing on your own terms and get what you came here for." - Oliver James

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

I can't wait to take advantage of range of flights available from YEG. No more long layovers and driving to Calgary. The flights to Edmonton spawned the import of fresh fish to Edmonton. Imagine what this could open up...

“Having a premier airline flying directly into continental Europe with all those connections to the Middle East and Africa, in addition to all the great ties we have with the Netherlands, is a real plus for Edmonton and the future of the business community and for the public in general,” Tom Ruth, president and CEO of Edmonton International Airport. READ MORE

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We need to really slow down but I'm not sure 6 km over the speed limit warrants a ticket.
Find out what the speed limits are in your area.

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Calgary and Edmonton top the list of places to invest in Alberta Jump HERE

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BMO Susan Brown Head of Banking:

“We think that Alberta’s economy should definitely remain the leader among all of the provinces this year and next thanks to strength in the energy sector, surging population and a strong labour market. Our outlook for Alberta remains very positive and we’re very optimistic about the province and the prospects in this province,”

“We’re expecting Real GDP growth of 3.5 per cent in 2014 and even with the drop in oil prices we’re still expecting growth of 2.9 per cent in 2015. And that is certainly stronger growth than we’re seeing anywhere else in the country. It’s one of the reasons that we remain as optimistic about economic prospects in this province as we do. READ HERE

Apparently they're cheap in B.C.!

For all of those who thought a private island was out of their reach, you can end that type of negative thinking.

For as little as $395,000, you can retell bon mots of "summering on my island" at any social gathering.

It is tempting.... jump or swim here